The best currency pairs to trade during the Asian session are USD/JPY, AUD/JPY, NZD/JPY, AUD/USD, and NZD/USD. These pairs offer good liquidity, steady volatility, and strong links to major Asian economies like Japan, Australia, and New Zealand. That’s why they move more than other pairs during these hours.
Key Takeaways
- The best currency pairs to trade during the Asian session are USD/JPY, AUD/JPY, NZD/JPY, AUD/USD, and NZD/USD.
- These pairs are most active because their home markets are open during this time.
- Commodity prices, interest rate news, and Asian economic reports impact these currencies most.
- The Asian session is slower but offers clean trends, perfect for range or breakout strategies.
- Choosing the right broker, like Defcofx, helps you trade these pairs with low spreads and fast execution.
What Is the Asian Trading Session?
The Asian session, also called the Tokyo session, starts around 11:00 PM GMT and ends at 8:00 AM GMT. This session includes trading centers like Tokyo, Sydney, and Singapore. It’s the first session to open each day in the forex market.
Many traders think the Asian session is slow, but it’s actually very important. It sets the tone for the rest of the day. Pairs with currencies from Asia-Pacific countries are most active during this time. That’s why the best currency pairs to trade during the Asian session are ones tied to Japan, Australia, or New Zealand.
Let’s now go deeper into each of these currency pairs and why they work so well during the Asian hours.
USD/JPY: Big Volume and Steady Moves
The USD/JPY pair is one of the most traded in the world. The U.S. dollar is the most used currency, and the Japanese yen is the third most traded. During the Asian session, Tokyo’s financial markets are open, and the yen is most active.
This pair is popular because:
- It has high trading volume.
- It usually has low spreads.
- It reacts to Japanese economic news like inflation and interest rates.
- It often shows strong trends with clear entry and exit points.
Historical volatility for USD/JPY during the Asian session is steady, around 20 to 40 pips per session, depending on the day. When there’s major news, like a Bank of Japan policy change, this can rise to over 100 pips.
Pro Tip: Look for Tokyo session breakouts around 1 to 2 hours after open. The price may consolidate first, then move fast once volume picks up.
AUD/JPY: Commodity Driven and Risk Sensitive
AUD/JPY is another top pair for the Asian session. Australia and Japan are both active during this time. This pair is also tied to risk sentiment and commodity prices, especially gold and iron ore.
Why AUD/JPY works during this session:
- Both currencies are open and active.
- It reacts to Australian job reports and interest rate decisions.
- It’s used by traders to bet on “risk-on” or “risk-off” moves.
- It follows commodity trends closely.
Correlation with commodities: The Australian dollar rises when gold prices rise. Japan is a big importer, so it reacts to oil prices. Watching these commodities can help predict AUD/JPY moves.
Case Study: In 2023, AUD/JPY spiked over 90 pips during the Asian session when Australia reported better-than-expected job growth. Traders who entered early caught the full move.
Strategy Tip: Use RSI or MACD with support/resistance lines. Look for reversals near known levels after news spikes.
NZD/JPY: Calm but Reactive
NZD/JPY is a lighter pair but still one of the best pairs to trade during the Asian session because of its clean movements and link to commodity news.
Why NZD/JPY is good during Asia hours:
- New Zealand and Japan are both open.
- It reacts to dairy prices, which are key to New Zealand’s economy.
- It moves on trade data and China-related news.
Historical volatility is slightly lower than AUD/JPY, averaging 15 to 30 pips during the session. However, it tends to trend steadily, which is helpful for new traders.
Expert Insight: Many beginner traders prefer NZD/JPY because it moves slowly and doesn’t fake out as often as faster pairs.
Common Mistake: Traders get bored and enter trades with no signal. Patience is key with NZD/JPY; wait for clean setups.
AUD/USD: Strong Reactions to News
AUD/USD is a cross between the U.S. dollar and the Australian dollar. Even though the U.S. is sleeping during this session, the Aussie is active, and local news drives this pair.
Why AUD/USD is active:
- Australia’s central bank announcements often happen during this session.
- It’s affected by China news since China is a top buyer of Australian exports.
- Gold prices also influence this pair.
Session overlap impact: Sometimes the Sydney and Tokyo sessions overlap for the first few hours, giving AUD/USD a small burst in volume. During this overlap, spreads tighten, and momentum improves.
Pro Tip: Watch for breakouts from the Asian range around the London session open (8:00 AM GMT). This is called the “Asian range breakout” strategy.
NZD/USD: Low Spread and Predictable
NZD/USD is a calm but useful pair for traders who don’t like surprises. It offers slow, steady movements and low spreads with many brokers.
Why NZD/USD makes the list:
- It reacts to New Zealand news and global dairy prices.
- It’s less noisy than AUD/USD.
- Good for scalpers and short-term swing trades.
Commodity correlation: New Zealand’s economy relies on dairy, meat, and agriculture. Watching global dairy auction reports can help forecast NZD moves.
Case Study: In early 2024, NZD/USD climbed over 60 pips in one Tokyo session after strong GDP data and a global rise in milk prices.
Risk Tip: Use tighter stop-losses. Since the pair moves slowly, wide stops eat your profit.
Session Overlap and Timing
Understanding when the Asian session overlaps with other sessions can help improve your trades.
- Sydney + Tokyo (2:00 AM–3:00 AM GMT): Light volume but clean moves in AUD and NZD pairs.
- Tokyo only (3:00 AM–6:00 AM GMT): Best time for JPY-related pairs.
- Tokyo + London (7:00 AM–8:00 AM GMT): Sudden spikes and breakouts begin to form.
Avoid trading 30 minutes before major news, like interest rate decisions or inflation data.
Practical Strategies for the Asian Session
Here are a few simple but effective strategies you can use during the Asian session:
- Range Trading: Since the market is usually slow, many pairs move sideways. Buy low, sell high within the range.
- Breakout Setup: Wait for a pair to stay in a tight range for 2–3 hours, then trade the breakout.
- Session Opener Fade: Prices often spike early in the session and fade back. Fade means you trade in the opposite direction of the early move.
- News Reaction Trading: Trade only when strong news comes out from Australia, New Zealand, or Japan.
Conclusion
If you want to trade while the world sleeps, the Asian session is your window of opportunity. By focusing on the best pairs to trade during the Asian session, like USD/JPY, AUD/JPY, NZD/JPY, AUD/USD, and NZD/USD, you can find smooth, controlled price action and avoid the chaos of other sessions.
To make the most of these pairs, you also need a reliable broker. Defcofx offers the perfect tools for Asian session trading. With high leverage up to 1:2000, no swap fees, spreads from 0.3 pips, and support that works even on weekends, Defcofx helps traders stay flexible and fast. Plus, their 40% welcome bonus makes it easier to start strong.
FAQ
1. What time does the Asian session start and end?
It starts around 11:00 PM GMT and ends at 8:00 AM GMT.
2. Which pair is best for beginners during the Asian session?
NZD/JPY is a good choice because it moves slowly and is easier to read.
3. Should I trade non-Asian pairs like EUR/USD during this session?
No, they tend to stay flat and show low volume. It’s better to stick with JPY, AUD, and NZD pairs.
4. How much do these pairs move on average?
Most Asian pairs move between 20 to 50 pips during this session, depending on the news.
5. Is the Asian session good for scalping?
Yes, especially with low-spread brokers like Defcofx. Look for tight ranges and quick reversals.
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